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The market data is provided by the HitBTC exchange.[1]
The Barclay Cryptocurrency Traders Index monitors the returns of the 19 funds that trade in virtual currencies. It has taken a beating this year and is down 43.1 percent[2] year to date.
However, funds that are market makers and who trade in arbitrage strategies are having a field day, as some have gained 30 percent[3] in the first quarter.
This shows that whatever the market condition, the traders can always develop a strategy to profit from it.
The miners are not that lucky. According to Morgan Stanley, the miners of Bitcoin will remain unprofitable if prices remain below $8,600[4].
The big problem is that no one knows how to evaluate the leading cryptocurrency. The targets range from $100 to $100,000[5] and higher[6], but when prices don’t fall even during bad news, it is usually a sign that the bottom is around the corner. We believe that most digital currencies have bottomed out, at least in the short-term.
BTC/USD
Bitcoin[7] has finally broken out of the 50-day SMA after remaining range-bound for seven days. Though this is a bullish sign, we still don’t see a strong buying conviction, as the up move is lacking momentum. This shows that the market participants are cautious of this rally.
The next target on the upside is $9,400, where we suggest booking partial profits. Once this level
